PKNS to venture deeper into healthcare

SHAH ALAM, 9 May: Selangor State Development Corp’s (PKNS) unit, Selgate Corp Sdn Bhd, which inked a memorandum of understanding (MoU) with Salam Group of Hospitals last Friday, plans to invest RM600 million to develop five new hospitals in the state.

“The new hospitals will provide quality healthcare services that are more affordable than what is ultimately paid at alternate hospitals currently,” he added.

Through Selgate, PKNS ventured into the healthcare business by acquiring 30% equity in Gombak Medical Centre (GMC) last December.

To upgrade the capacity and capability of GMC, the group will build a 200-bed hospital at a gross development cost (GDC) of RM140 million in Kampung Sri Makmur, Gombak; a 150 to 200-bed hospital in Shah Alam Section 13, at a GDC of RM200-RM250 million; and a 150 to 200-bed hospital in Setia Alam at a GDC of RM1 billion, to be developed with a local or international partner; and a 150 to 200-bed hospital in Cyberjaya at a GDC of RM200-RM250 million.

At present, PKNS has close to 10,000ha of land, which includes 6,000ha in Pandan Jaya and 1,200ha in Selangor Cyber Valley.

The MoU signed on Friday will see Selgate and Salam Group of Hospitals’ holding company Hatimuda Sdn Bhd jointly develop a hospital in Rawang, at an estimated GDC of RM140 million.

The hospital, to be named Selgate Rawang Hospital, will have a total capacity of 200 beds, with the initial phase of 80 beds to be commissioned and operational by the end of 2018.

Construction is scheduled to begin by the first quarter of next year and the hospital will be completed by 2020.

Hatimuda has been in the healthcare business for more than 10 years. Currently, it owns and manages three hospitals, in Shah Alam, Senawang, and Kuala Terengganu.

PKNS general manager Azlan Md Alifiah said the group intends to increase its non-property segment contribution to at least 40-50% of its income from 10% currently within the next four to five years.

“We want to have more recurring income, rather than (just being) a pure property player that has more than 80% of income solely from property development.

“Hopefully, together with Hatimuda, we will be able to go even beyond Selangor. This is our target and we have strong support from the state government of Selangor,” Azlan said